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Tuesday, October 11, 2016

Shale Gas Weekly Review - October 11, 2016

The following
information is an update of recent, local, state, national, and international
legal developments relevant to shale gas.

New Pennsylvania Oil and
Gas Regulations Take Effect

The new rules (25 PA. CODE CHS. 78 AND 78a) promulgated by the Environmental Quality Board were posted
in the Pennsylvania Bulletin on October 7, 2016, and went into effect the next
day. The rules are intended to set standards for the oil and gas industry to
maximize safety and environmental protection. The rules include “public
resource impact screening, water supply replacement standards, waste management
and disposal, and establishing identification and select monitoring of wells
located proximal to hydraulic fracturing activities.” The changes add a new
chapter (Chapter 78a) to address specific requirements for unconventional wells
and revise the existing requirements pertaining to conventional wells (Chapter
78) to avoid conflicts with the unconventional well requirements.

PHMSA Issues Interim
Final Rule for Pipeline Safety

On October 3, 2016, the
Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an Interim Final Rule
(IFR) intended to provide additional protections for pipeline safety. The new
rule establishes procedures that allow for emergency orders “to address an
unsafe condition or practice, or combination of unsafe conditions or practices,
that pose an imminent hazard to public health and safety or the environment.”
This rule is a direct response to the PIPES Act which
gives PHMSA imminent hazard authority to respond to pipeline emergencies.

EPA Adds Updates from
2015 for Greenhouse Gas Reporting Program

The Environmental
Protection Agency has published
information on petroleum and natural gas systems emissions of greenhouse gases.
From 2014 to 2015, facilities reporting emissions for carbon dioxide, methane,
and nitrous oxide decreased from 2,416 to 2,413. From 2014 to 2015, carbon
dioxide emissions decreased from 161.9 to 160.5 million metric tons and methane
emissions decreased from 73.1 to 70.3 million metric tons. Reported emissions
of nitrous oxide increased from 0.1 to 0.6 million metric tons.

Dakota Access, LLC,
Moves Forward After U.S. District Court Order

On October 9, 2016 the
U.S. Court of Appeals for the D.C. Circuit issued an order dissolving an
injunction that prohibited continued construction of the Dakota Access Pipeline.
(Standing Rock v. U.S. Army Corps of Engineers, 1:16-cv-01534-JEB). The
court held that the Standing Rock Sioux Tribe was not able to show a
substantial likelihood of success on the merits or that there would be
irreparable harm without the injunction. However, construction of the
pipeline is still prohibited by the
U.S. Army Corps of Engineers on land near Lake Oahe.

New Study Reviews
Methane Emissions from Fossil Fuels

A study published in
Nature, International Weekly Journal of Science on October 5, 2016, evaluated
methane emission trends from the global fossil fuel industry. According to the
study, emissions coming from “natural gas, oil and coal production and their
usage are 20 to 60 per cent greater than inventories.” However, the study also
found that methane emissions from fossil fuel production have declined “from
approximately 8 per cent to approximately 2 per cent over the past three
decades.” The study is entitled “Upward Revision of Global Fossil Fuel Methane
Emissions Based on Isotope Database.”

Cuadrilla Shale Company
Permitted to Drill in Lancashire

On October 6, 2016, the
UK Department for Communities and Local Government secretary Sajid Javid accepted the appeal
for exploratory unconventional drilling for four wells at Preston New Road. The
secretary deferred his decision on the second drilling site, Roseacre Wood, to
allow for more information gathering. Objections by Lancashire council cited
“visual impact and noise” when they initially refused to approve the drilling
site applications. With their drilling applications now approved, Cuadrilla is
set to begin the project in 2017.

Brazil Passes Bill
Allowing More Foreign Participation in Oil Fields

According to the Brazil-U.S. Business Council, on October 5, 2016, the Brazilian House of
Representatives passed a bill that removes the participation requirements of
Petrobras in developmental activities. Previously, Petrobras was required to
participate in 30% of oil field exploration as well as act as the operator of the
field. This new bill makes the participation optional, allowing other foreign
investors to participate more fully in oil exploration and development.

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The Center for Agricultural and Shale Law (CASL) provides information and educational programs on agricultural and shale law and policy for producers and agribusinesses, attorneys, government officials, and the general public. The Center does not provide legal advice, nor is its work intended to be a substitute for such advice and counsel.